Financial Stability Ratings®

Insurance Sectors We Serve:

"Joe Petrelli's native ability to assess, evaluate and rate experience and factual data objectively is one asset whose strength is off the charts! He has practiced and preached his faith in transparency and accountability before the business schools and business got religion."Steve Acunto, Insurance Advocate

Financial Stability Ratings®

Financial stability can be independent of size.

Financial Stability Ratings® (FSRs) are a leading indicator of the financial stability of Property and Casualty insurers and Title underwriters. Our rating process provides an objective baseline for assessing solvency based upon changes in financial stability, as manifested in an insurers' balance sheet. FSRs are based upon a series of quantitative ratios and considerations which together comprise our Financial Stability Analysis Model.

A Financial Stability Rating® summarizes our opinion as to the insurer's ability to insulate itself from the business cycle that exists in the general economy as well as the underwriting cycle that exists in the insurance industry. Thus, an FSR summarizes our opinion as to the relative ability of an insurer to survive a downturn in general economic conditions as well as a downturn in the underwriting cycle.

Our focus is somewhat unique. While we acknowledge and recognize the importance of profitability, we believe that balance sheet strength and financial integrity are the ultimate determinants of the long term financial stability required to honor meritorious claims. Accordingly, while operating profit remains an important element of Financial Stability Ratings®, the ability of an insurer to remain financially stable under a variety of economic stress tests requires a focus on balance sheet integrity.

Financial Stability Ratings® are not an endorsement of any particular insurer or its products. Insureds and agents need to independently evaluate their relationship with a particular insurer as well as the applicability of that insurer's products to the needs of the insured or agent. Financial Stability Ratings® present our opinion of the ability of the insurer to meet its insurance related obligations based upon our assessment of financial information.